PPAI Joins Industry Message On Refining Tariff Exclusion Process

Staff - August 9, 2018

As part of the USTR’s Section 301 investigation, the Office of the U.S. Trade Representative (USTR) released the final list of the second round of tariffs on products imported from China on August 7. This round takes effect August 23 and levies a 25 percent tariff on approximately $16 billion in imports.

China’s Ministry of Commerce has responded, announcing tariffs on approximately $16 billion worth of imported goods from the U.S., which will also go into effect August 23. A further Chinese list, in response to the third round of tariffs proposed by the U.S., covering approximately $60 billion worth of U.S. imports, has also been published by the Chinese government. A translation of the first list can be found here, and of the most recent list, here.

Following the second list’s initial publication on June 15 and a two-day public hearing in July, in which the USTR received written comments and testimony, the original list of 284 tariff lines was cut to 279. PPAI has joined with 80 other trade associations in a letter to the USTR to share their recommendations regarding the China Section 301 product exclusion process to ensure basic due process and procedural fairness to their members and stakeholders.

The letter notes that the first, second and proposed third list of tariffs “apply to overly broad eight-digit product categories and will negatively impact U.S. economic growth and jobs. To mitigate the negative impact of these broad tariffs, establishing an expedited and fair process to exclude products from these and future lists will be critically important.”

“The Administration’s objective to address valid concerns with Chinese intellectual property, technology transfer and innovation practices should not unduly harm U.S. workers, consumers, businesses and farmers. But without a well-designed and well-run product exclusion process, the negative costs on the U.S. economy and Americans will be more pronounced.”

For full details on the proposed product exclusion request procedures submitted by PPAI and its co-signers, click here.